Small Business Saturday is scheduled for the last Thursday of November. Unlike Black Friday and Cyber Monday, which focus on holiday sales for large retail chains, Small Business Saturday calls on people to “shop small” by making purchases at businesses with less than 1,500 employees.
How Small Business Saturday Originated
The idea for Small Business Saturday stems from a 2010 campaign by American Express. The company developed the campaign in an effort to to inspire Americans to shop at local businesses that were struggling to stay afloat during the Great Recession.
The campaign goal was simple: to help small businesses compete with large retail holiday sales like Black Friday and Cyber Monday by inspiring Americans to shop locally for their holiday needs. Due to the popularity of the first Small Business Saturday, the U.S. Senate unanimously passed a resolution in 2011 to officially acknowledge the day, which is now celebrated in every state across the U.S. That same year, the U.S. Small Business Administration (SBA) became American Express’s official co-sponsor of the day.
Why It Is Important To Shop Small
According to the SBA, a small business is an organization with revenue between $1 million and $40 million and 1,500 employees or less. While they may be “small,” these types of businesses play a critical role in the U.S. economy and its domestic supply chain. In December 2021, the SBA estimated that more than 99% of American businesses are considered to be small businesses. These businesses are a huge source of employment, having created 62% of all new jobs in the U.S. between 1995 and 2020.
In 2019, small businesses generated 44% of economic activity in the U.S. Beyond small businesses’ contributions to gross domestic product (GDP), they are also crucial to local communities, who rely on the products and services of small businesses to facilitate a vibrant economy and local culture. In many ways, small local businesses such as coffee shops, barber shops, daycare centers, car repair shops and bodegas are spaces that connect communities.
Robert F. Smith’s Support for Small Businesses
Robert F. Smith, Founder, Chairman and CEO of Vista Equity Partners (Vista), is an ardent advocate for small businesses. Smith was a leading voice in securing critical funds for minority small businesses through the Paycheck Protection Program in 2020. To help, Smith partnered with White House officials, members of Congress and influential interest groups to provide minority small businesses with the funds they needed to survive the pandemic. In all, Smith’s work on behalf of small businesses has helped secure $10 billion for community development financial institutions (CDFIs).
Smith attributes his support for small businesses to his childhood experiences, saying “All the black-owned businesses, Ms. Russ’s cafeteria, Mr. Magee’s diner, the fried chicken place, the dry cleaners, all those little stores [made up] our neighborhood…“That was our community. They were decimated. Those business owners never came back. If these Black businesses fail, these are the largest employers in our community. If they fail… it may be decades before they come back again. I saw it in my own neighborhood as a child,” Smith said.
Smith also uplifts small businesses through his work with the Southern Communities Initiative, an organization he co-founded that seeks to address issues of systemic racism in education, housing, healthcare, the digital economy and more across six Southern cities. Southern Communities Initiative directs funds to local initiatives, amplying community organizations and the impact they have within their neighborhoods.
In all, SCI has partnered with more than 90 community organizations, supported around 9,000 Black-owned businesses and minority business enterprises (MBEs) and garnered more than $100 billion in philanthropy and corporate racial equity commitments from large corporations.
Learn more about Southern Communities Initiative.
